Essays on General Motors Ignition Recall Incident Case Study

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The paper "General Motors Ignition Recall Incident" is a good example of a business case study.   Notably, many organizations often find themselves in profound predicaments because of one major drawback: cultural crisis. A majority of major corporations are still locked in the old mindset associated with hiding the truth from their clients for the fear that the truth might worsen the whole crisis. Hence, they decide to handle the incidents behind closed doors in order to avoid raising an alarm. Besides, many corporations have been cultured in a way that when facing a major crisis or something unfamiliar, the management will often rely on the defence ideology or mechanism.

Accordingly, General Motors faced a major crisis in February 2014, which was associated with the production of vehicles with faulty ignition switches hence leading to numerous deaths as well as injuries through road accidents. Consequently, the Company reacted to the incident by recalling 2.7 million vehicles (Valukas, 2014). This incident is evidently linked to the concept of cultural crisis as investigations later indicated that General Motors knew about the defect for the past few years but did choose to conceal the whole issue.

As such, this paper aims at highlighting GM’ s switch ignition recall incident, which happened in February 2014. General Motors Company Overview Founded by William Durant in 1902, General Motors Company is known for designing, manufacturing as well as selling of automobile parts and trucks to their customers across the globe. General Motors Company has grown over the years and at some point before 2009, and it was considered as the leading auto manufacturer with regards to its burgeoning sales. Today, the company is operating in more than 157 countries and sells eighteen automobile brands thus satisfying the needs of various types of patrons located in different parts of the world.

General Motors is the largest manufacturer of automobiles in the United States as it has scooped more than 18% of the automotive market share (GM, 2015). Its success can be linked with its profound knowledge in the automobile industry as well as its customers. Headquartered in Detroit, United States, General Motors also provides financial services related to automotive acquisition through its subsidiary known as General Motors Financial Company Inc.

The General Motors Company has four segments which include General Motors North America (GMNA), Generals Motors South America (GMSA), General Motors Europe (GME) and General Motors International Operations (GMIO). The firm is also engaged in the selling of cars as well as trucks to fleet customers including renowned rental companies, governments, commercial fleet customers and leasing companies. General Motors Company often sells its cars to fleet clients both directly and through an extensive network of dealers located around the globe. Besides, the fleet of clients can as well obtain a variety of automotive aftersales services as well as products from the company’ s designated dealers.

Some of the aftersales care services include collision repairs, maintenance, vehicle accessories, light repairs as well as extended service warranties. Furthermore, the firm provided 13 FlexFuel vehicles in America for four models including the 2015 model to the fleet as well as commercial patrons who are capable of operating on gasoline, E86 ethanol. Moreover, the General Motors North America is known to offer vehicles, which are manufactured, developed and marketed under the Chevrolet, Buick, Cadillac and GMC brands to its clients in North America.

On the other hand, General Motors also offers vehicles to its customers outside North America under the Cadillac, Buick, Opel, GMC, Chevrolet and Vauxhall brands.

References

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Bennett, J. 2014. GM’s Ammann Drives for Change. [online] WSJ. Available at: http://www.wsj.com/articles/gms-ammann-pushes-for-change-1415751611 [Accessed 31 Jan.2016].

Bennett, J., & Spector, M. 2015, March 13. General Motors Settles Case That Triggered Ignition-Switch Recall. Retrieved January 31, 2016, from The Wall Street Journal: http://www.wsj.com/articles/wrongful-death-case-that-triggered-gm-recall-settled-1426262260

Business Insider, 2015. GM Adds Another 92,000 Cars To Its Ignition Switch Recall. [online] Available at: http://www.businessinsider.com/afp-gm-adds-another-92000-vehicles-to ignition-switch-recall 2015-1 [Accessed 31 Jan. 2016].

Fletcher, M. 2014a, June 5. GM CEO: 15 fired over ignition switch recalls; probe shows pattern of failures, no cover-up. Retrieved from: http://www.washingtonpost.com/business/economy/gm-ceo-15-fired-over ignition-switch-recalls-probe-shows-pattern-of-failures-no coverup/2014/06/05/2dc575bc-ecb8-

GM. 2015. About GM: Our Company. Retrieved January 31, 2016, from GM: http://www.gm.com/company/aboutGM/our_company.html

Gower, K. K. 2006. Truth and Transparency. In K. Fitzpatrick, & C. Bronstein, Ethical in Public Relations, Responsible Advocacy. Thousand Oaks: Sage Publications, Inc.

Hallahan, K. 2006. Responsible Online Communication. In K. Fitzpatrick, & C. Bronstein, Ethics in Public Relations, Responsible Advocacy (pp. 107-130). Thousand Oaks: Sage Publications, Inc.

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McCombs, M. and Ghanem, S.I., 2001. The convergence of agenda setting and framing. Framing public life: Perspectives on media and our understanding of the social world, pp.67-81.

Valukas, A.R., 2014. Report to Board of Directors of General Motors Company Regarding Ignition Switch Recalls. General Motors internal investigative report. Chicago: Jenner&Block. Available online at http://s3. documentcloud. org/documents/1183508/gm-internal-investigation-report. pdf.

Wayland, M. 2014. Fortune: GM’s Barra Crisis Manager of the Year. [online] Detroit News. Available at: http://www.detroitnews.com/story/business/autos/general motors/2014/12/29/barra-named-crisis-manager-year/21015167/ [Accessed 31 Jan. 2016].

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